Delta, facing its own troubles, may have to repay $300 million on behalf of Brazil's Gol

Delta is facing a fresh Latin American headache as a Monday deadline nears for former Brazilian partner Gol Linhas Aereas Inteligentes to repay a $300m loan that the US carrier guaranteed. If Gol fails to repay - which ratings agencies say is looking more likely - Delta would have to honor the debt on Gol's behalf, honoring the five-year-old agreement. But just like Gol, the carrier, which said in July it was burning $27m a day here has little cash to spare due to the coronavirus pandemic. Gol’s struggles are just the latest challenge for Delta, whose investments in Latin America, once seen as a growth area, have faltered due to COVID-19. Delta's 49% stake in Aeromexico and 20% stake in LATAM Airlines Group are at risk of dilution or being wiped here out as both airlines undergo bankruptcy restructurings. For Gol, Brazil’s largest carrier, the due date of the Delta-backed private loan comes amid a severe cash crunch. The loan was extended by unidentified private investors. “Gol is facing constant cash burn without refinancing possibilities,” said Amalia Bulacios, who covers Gol for S&P Global Ratings, which rates its debt as CCC-, at risk of default. Story has more.<br/>